Wrapped Cygnus USDPrice

(WCGUSD)

WCGUSD is a decentralized, over-collateralized stablecoin native to the Cygnus ecosystem. It is designed to maintain a stable peg to the US Dollar and functions as a wrapped version of `cgUSD`. It provides a stable and reliable digital asset for users within the ecosystem, enhancing its utility across various decentralized applications.

The primary purpose of WCGUSD is to simplify integration into existing decentralized finance protocols. It addresses the complexities of handling rebasing tokens like `cgUSD` by offering a non-rebasing alternative, making it more compatible with a wider range of platforms and applications that may not natively support rebasing functionalities.

While `cgUSD` is a rebasing token whose balance increases over time due to accrued interest from US Treasury bills, WCGUSD is a non-rebasing token. This means the amount of WCGUSD held remains constant, but its relative value or price (in terms of `cgUSD`) is designed to increase over time, reflecting the underlying growth of `cgUSD`.

WCGUSD is generated when users deposit accepted collateral assets into a smart contract vault on the platform, allowing them to mint WCGUSD against their collateral. Users can also acquire WCGUSD by swapping for it on various decentralized exchanges, providing multiple avenues for accessibility within the ecosystem.

WCGUSD and `cgUSD` can be converted into each other seamlessly and without any fees. They are mathematically equivalent, ensuring straightforward interchangeability for users within the Cygnus ecosystem. This flexibility allows users to choose the token type that best suits their needs, whether a rebasing or non-rebasing asset.

Users can redeem WCGUSD by unwrapping it into `cgUSD`. The `cgUSD` is then transformed into USDC at a 1:1 ratio. This process typically involves a 'Request withdrawal' step, where the pending amount is denominated in `cgUSD` before its final conversion to USDC, ensuring a clear and structured redemption path.